What happens if a Byrider franchisee is not in compliance with the material terms and conditions of the agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event the Franchisee is not in compliance, the Company agrees to provide written notice to the Franchisee and the Franchisee will be able to cure within 5 business days of receipt of notice of its non-compliance.
In the event Franchisee cures its non-compliance within such period, Franchisee will be deemed to have met its obligation under 5.2B;
(j) The Franchisee fails to comply with any other provision of this Agreement and does not correct the failure within (30) days after the Company delivers written notice of the failure to the Franchisee.
C. Effectiveness of Termination.
Except for termination pursuant to Section 16.2B(1), 16.2A(3) or 16.2A(4), the termination of this Agreement pursuant to Section 16.2A or Section 16.2B shall be automatically effective sixty (60) days after delivery of the notice of termination, provided that a termination for default pursuant to Section 16.2B(1), 16.2A(3) or 16.2A(4), shall be effective ten (10) days after delivery of the notice of termination.
The Franchisee acknowledges and agrees that, upon delivery of this notice of termination, Franchisee shall have no additional opportunity to cure the default based upon which the Company terminated this Agreement.
The Franchisee further acknowledges and agrees that the sixty (60) day (or ten (10) day period if terminated pursuant to Section 16.2B(1) or pursuant to 16.2A(4)) (referred to herein as the "Wind Down Period") shall be used by Franchisee for the sole purpose of winding down the Franchisee's Business and, during such period, the Franchisee must continue to operate the Franchisee's Business pursuant to the terms of this Agreement.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, if a franchisee fails to comply with the material terms and conditions of the franchise agreement, Byrider will provide written notice to the franchisee. The franchisee then has the opportunity to correct the non-compliance within 5 business days of receiving the notice.
If the franchisee successfully addresses the non-compliance within the 5-day period, they are considered to have met their obligations under the agreement. This cure period allows the franchisee to rectify the issue and maintain compliance, avoiding further action from Byrider.
However, if the franchisee does not correct the failure to comply with any other provision of the Agreement within thirty (30) days after Byrider delivers written notice of the failure to the Franchisee, Byrider can terminate the agreement. Except for termination pursuant to Section 16.2B(1), 16.2A(3) or 16.2A(4), the termination of this Agreement pursuant to Section 16.2A or Section 16.2B shall be automatically effective sixty (60) days after delivery of the notice of termination, provided that a termination for default pursuant to Section 16.2B(1), 16.2A(3) or 16.2A(4), shall be effective ten (10) days after delivery of the notice of termination. The franchisee will have no additional opportunity to cure the default and must use the Wind Down Period for the sole purpose of winding down the Franchisee's Business and, during such period, the Franchisee must continue to operate the Franchisee's Business pursuant to the terms of this Agreement.